Directive (EU) 2018/822 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements

Summary:

The European Commission adopted on 21 June 2017 a proposal increasing scrutiny around the activities of tax intermediaries. The proposal was submitted to the European Parliament and the EESC for consultation.

The Council of the European Union formally adopted the proposed draft law on 25 May 2018, after a political agreement in March 2018.

Further information:

The draft law takes the form of an amendment to the Directive for Administration Cooperation (DAC). It proposes an automatic exchange of information on tax planning scheme through a centralised database, giving member states early warning on new risks of avoidance and enabling them to take measures to block harmful arrangements.

The proposal was released in the context of media leaks such as the Panana Papers and the Paradise Papers, exposing how some intermediaries actively assist companies and individuals to escape taxation, usually through complex cross-border schemes.

It aims to reinforce the European Union's tax transparency framework, by shedding new light on the activities of intermediaries and the tax planning arrangements being used. It also ensured a new approach to implementing the recommended mandatory disclosure provisions in the OECD's Base Erosion and Profit Shifting (BEPS) project, as endorsed by the G20.

• Primary Source

EUR-Lex: COM(2017)335: Proposal for a Council Directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2017:335:FIN

EUR-Lex: SWD(2017)236: Impact assessment http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:236:FIN

EUR-Lex: SWD(2017)237: Executive summary of the impact assessment http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:237:FIN

EESC: Opinion, January 2018: Disincentives to tax avoidance or evasion http://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/disincentives-tax-avoidance-or-evasion

EurActiv, 21.06.17: Commission moves to tighten tax evasion rules http://www.euractiv.com/section/economy-jobs/news/commission-moves-to-tighten-tax-evasion-rules/

European Commission: New tax transparency rules for intermediaries [Q&A] http://europa.eu/rapid/press-release_MEMO-17-1677_en.htm

European Commission: Speech by Commissioner Pierre Moscovici at the press conference on the Commission's proposal on tax intermediaries http://europa.eu/rapid/press-release_SPEECH-17-1753_en.htm

The Irish Times, 21.06.17: New reporting rules for cross-border tax schemes announced https://www.irishtimes.com/business/economy/new-reporting-rules-for-cross-border-tax-schemes-announced-1.3128057

Legislative Train: Proposal for a Council Directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements http://www.europarl.europa.eu/legislative-train/theme-deeper-and-fairer-internal-market-with-a-strengthened-industrial-base-taxation/file-tax-transparency-for-intermediaries

EP: Legislative Observatory: Taxation: Mandatory automatic exchange of information in relation to reportable cross-border arrangements http://www.europarl.europa.eu/oeil-mobile/fiche-procedure/2017/0138(CNS)

European Commission: Press Release, 13.03.18: Commission welcomes adoption of far-reaching new transparency rules for tax advisers in the EU http://europa.eu/rapid/press-release_IP-18-1841_en.htm

European Commission: DG Taxation and Customs: Transparency for intermediaries https://ec.europa.eu/taxation_customs/business/company-tax/transparency-intermediaries

European Commission: Press Release, 21.06.17: Commission forges ahead on new transparency rules for tax planning intermediaries http://europa.eu/rapid/press-release_IP-17-1663_en.htm

Reuters, 13.03.18: Accountants face EU clamp-down on aggressive tax planning https://uk.reuters.com/article/idUKL8N1QU54N

Deutsche Welle, 13.03.18: EU states agree on transparency rules to curb tax avoidance http://p.dw.com/p/2uFhU

ICIJ: Blog, 14.03.18: ‘The world has changed’: Europe targets advisers, accountants, lawyers with new tax rules https://www.icij.org/blog/2018/03/world-changed-europe-targets-advisers-accounts-lawyers-new-tax-rules/

Council of the European Union: Press Release, 13.03.18: Corporate tax avoidance: Agreement reached on tax intermediaries http://www.consilium.europa.eu/en/press/press-releases/2018/03/13/corporate-tax-avoidance-agreement-reached-on-tax-intermediaries/

EP: EPRS: Plenary at a Glance, February 2018: Tax transparency for intermediaries http://www.europarl.europa.eu/RegData/etudes/ATAG/2018/614710/EPRS_ATA(2018)614710_EN.pdf

EP: EPRS: Briefing: EU legislation in Progress, July 2018: Tax transparency for intermediaries http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/614634/EPRS_BRI(2017)614634_EN.pdf

Council of the European Union: Press Release, 25.05.18: Corporate tax avoidance: Transparency rules adopted for tax intermediaries http://www.consilium.europa.eu/en/press/press-releases/2018/05/25/corporate-tax-avoidance-transparency-rules-adopted-for-tax-intermediaries/

KPMG [Webcast]: Mandatory Disclosure Rules for Intermediaries – impact on financial services https://home.kpmg.com/xx/en/home/insights/2018/05/webcast-mandatory-disclosure-rules-for-intermediaries.html

KPMG: Insights, May 2018: EU disclosure requirements for certain cross border arrangements https://home.kpmg.com/uk/en/home/insights/2018/05/tmd-eu-disclosure-requirements-for-certain-cross-border-arrangements.html

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